Price Increase

[Elf]

I buy a lot of structural ,cold form and prefinished steel and since mid December prices are rising rapidly (15%) .My vendors are saying hang on because it's not over only beginning .The Elio will be under pressure and will have to raise their target price .Not to worry as our wages and salaries will all rise to compensate See not all news is bad.

 

[Coss]

I buy a lot of structural ,cold form and prefinished steel and since mid December prices are rising rapidly (15%) .My vendors are saying hang on because it's not over only beginning .The Elio will be under pressure and will have to raise their target price .Not to worry as our wages and salaries will all rise to compensate See not all news is bad.

But is the price increase across the board with all suppliers?

 

[Ty]

Ouch, I tell ya!

 

[Elf]

But is the price increase across the board with all suppliers?

Pretty much all suppliers and commodities with a few exceptions .The price increases are driven by the mills that seance there will be a large growth demand .Note that demand has not actually occurred but the industry is just anticipating .

 

[RSchneider]

I hear the same thing. The price of steel, aluminum, resin (for plastics) are all going up. Those are the three main components in a car. Many large companies (automotive and appliance) are buying up these products in large quantities and it's just driving up the price. Many believe that when we start up the tariffs and when manufacturing takes off again, the price of those raw materials will be much more than what it was back in November. Best way to put it, it's that they are locking in the price. Just like everyone has done with the Elio. For the companies that don't have the means to do this (i.e. Elio) they will be at the mercy of the market prices and that can go either way. You hold your price and either make a killing or take a beating. Most just raise the price in hopes that the costs go down and then they make a good profit.

The way I see it, they will be taking a bath on the first 65K cars and will have to make up the difference with the 250K they will be making per year. By then, they can pre buy and then negotiate contracts with their suppliers that lock in a price. As of now, there's not one legitimate supplier that will lock in a rock bottom price for a company that has never made a product and has no idea of when. I seriously doubt that even Tesla has the strength to lock in prices like big established manufacturers do.

There's also been an increase in the price of concrete. With the wall and all of the new manufacturing plants to be built in the US (they use lots of steel too and the steel for the wall must be bought in the US).

 

[Ty]

I hear the same thing. The price of steel, aluminum, resin (for plastics) are all going up. Those are the three main components in a car. Many large companies (automotive and appliance) are buying up these products in large quantities and it's just driving up the price. Many believe that when we start up the tariffs and when manufacturing takes off again, the price of those raw materials will be much more than what it was back in November. Best way to put it, it's that they are locking in the price. Just like everyone has done with the Elio. For the companies that don't have the means to do this (i.e. Elio) they will be at the mercy of the market prices and that can go either way. You hold your price and either make a killing or take a beating. Most just raise the price in hopes that the costs go down and then they make a good profit.

The way I see it, they will be taking a bath on the first 65K cars and will have to make up the difference with the 250K they will be making per year. By then, they can pre buy and then negotiate contracts with their suppliers that lock in a price. As of now, there's not one legitimate supplier that will lock in a rock bottom price for a company that has never made a product and has no idea of when. I seriously doubt that even Tesla has the strength to lock in prices like big established manufacturers do.

There's also been an increase in the price of concrete. With the wall and all of the new manufacturing plants to be built in the US (they use lots of steel too and the steel for the wall must be bought in the US).

Wait... isn't Mexico building that? (Maybe in dreamland)

 

[xtspode]

If the price of raw materials goes up, then the price of the vehicle needs to go up too. Even though I am locked in at $7000, I would not be really opposed to paying an extra 15% ($1050) if that is what it takes to get one in my driveway. On the other hand, I think Paul will do everything he can to honor the commitment and support from people who have been in much longer than the year and a half that I have been in. This has been a labor of love and passion for Paul, and I am still amazed at the stamina of that guy to keep this party going. If it was a scam, he has still worked harder for his money than if he had worked at the mill. A lesser man (or woman) would have caved long before this. I plan to keep rooting for Paul and the affordable autocycle until Paul gives up.

Go Elio

 

[karl]

Trumpet coolaid

 

[RSchneider]

The thing is, how many of the 65K reservation holders would be willing to accept a surcharge because the price of raw materials went up. I could see when Elio 65,001 rolls off the assembly line but not for 65,000. It is a binding contract and you have no recourse if they never build a car but you sure do if they build you one but charge you more than what you agreed to. That just has class action lawsuit written all over it. I don't know, is there something in the contract that allows them to charge you whatever they want due to things outside of their control?

 

[xtspode]

The thing is, how many of the 65K reservation holders would be willing to accept a surcharge because the price of raw materials went up. I could see when Elio 65,001 rolls off the assembly line but not for 65,000. It is a binding contract and you have no recourse if they never build a car but you sure do if they build you one but charge you more than what you agreed to. That just has class action lawsuit written all over it. I don't know, is there something in the contract that allows them to charge you whatever they want due to things outside of their control?

I agree I have a contract and I don't have to pay a surcharge. I am just saying I would if it means the difference between having and not having. Ever other manufacturer is going to price in the change, probably for later buyers, but as soon as they can. Just me saying I would pay the difference if I had to.